I am liquidy provider at Uniswap at three different pairs and it is very interesting to see how much I get from them – and why it is so big different.
From 15 % to 22 % – in one day
One pair is ETH/CEL. When I entered this pool Uniswap calculated that I was earning about 15% in a year. That’s is very good because it much more than I will get keeping them in Celsius (But – yes I know this have more risk)
Last Wednesday Celsius send out a mail to all customers and told them new levels and positive things to keep your CEL at them rather then sell it. Obviously many people wanted to make trade because the volume increase with 96 % over 24 H.
And – if you know how to earn money in Uniswap – you realize that I earned a lot more. Over a night the annual rate return went from about 15 to about 22. That is 50 % higher rate!
Of course – if the rate goes up it will pull more investors to the pool – and the rate will go down. But not as fast as the traders come to the market.
Your % = Your part of the pool * TradingVolume * 0,003
Trading in volume…
Obviously this will open up a new way (for me) of trading. Not focus at the value of a specific coin but focus at “which coin will have a extra high volyme soon”. Taking positions in those pools will make a good profit and then you need to move to next one some weeks later.
The gas fee
Yes I know you have to pay 2 gas fee everytime you withdraw from a pool and then join one other. And I am not the best expert to analyze market to see where next tradingvolyme will be. But still this is a interesting way.
Lets say that ETH will dramatically go down. Maybe a market crash? Then the volyme in ETH/USD-T will increase a lot (I think).
The gasfee will stop me to make a lot of transactions and I know – in long term a lot of trading is not the way to go. But I can still not just let this thought go away. Trading in trading volyme – that is a way to go.
My pools
Just now I have DEC/ETH but that is not because the high rate or high tradingvolyme. It is because I will get Landpieces as a liquidy provider. And I have CEL/ETH to get more out from my CEL. Just now the rate is 23,08 % and I think that is lovely. So I will stay there as long as I get good from it.
And AAVE/ETH (my other pool) is 37,35 % – pretty much
And what about DEC/ETH – I don’t know how to check but still I am there for the land, not the rate.
So what will happen after this 90 days when Splinterlands not gives away Land for the Liquidy Providers anymore? (or will they continue later on) I think it is good way to keep up liquidty and lock some dec in to uniswap.
Or will everyone withdraw and send it back to the game? If so – it would be awesome to stay and take a bigger part of the pool.
Trading at volyme? Maybe – A interesting way anyway
/ Minimining